16th August 2010


How to use the Guide

This guide is intended to serve two purposes.

The first is to provide the person responsible for buying PI with a comprehensive understanding of what to look for and what to avoid.

The second is to provide the business with material that can form a useful basis of education for staff. It is of paramount importance in today’s regulated environment that employees are constantly aware of the risks associated with being a broker and taught to recognise the signs of a potential complaint and claim.

The information in this guide will help to create that awareness and can usefully be sent to all relevant employees.

Part1 is a general descriptionof the issues surrounding PI insurance


Part 2 describes the component features of a typical PI policy.

The guide avoids legal and technical jargon. It has been compiled as a systematic examination of the structure of policy wordings, how the insurance should work in practice and the pitfalls that the insured may encounter that could result in a dispute with insurers and possible loss of cover.

The guide is intended to be of practical use when negotiating insurance but is not a legal treatise on policy wordings. If the reader has any questions concerning legal aspects of PI policies or their interpretation it would be as well to seek specific legal advice.

The guide includes headings entitled “Points to Consider” and “Top Tips”.

“Points to Consider”

These are questions that the reader should ask themselves to test the effectiveness of the policy and to highlight its potential shortcomings.

“Top Tips”

These assist the reader in understanding the context of the information contained in each section and offers tips for achieving best value .

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